Quite an significant day for the NYSE and for the US stock markets as well.

Elliott wise, this move to new all time highs on the ratio adjusted NYAD changes the current Dow count from being that of Intermediate 3 of Primary 5 to Intermediate wave 3 of Primary 3 to the upside. Dow upside price objectives under such conditions can and will be quite high with probable targets mentioned by such analysts as Don Wolanchuk and Harry Dent a very high probability.

With this also comes the suggestion that the COMPQ and NDX will now fully retrace .618 times the length of the declines seen in the 2000-2002 periods as a minimal expectation.

Thanks Randy for the timeliness of this historic information and the exciting times ahead that it portends.

"As for it being different this time, it is different every time. The question is in what way, and to what extent" - Tom McClellan

"An economist is someone who sees something happen, and then wonders if it would work in theory" - Ronald Reagan

"What we see depends mainly on what we look for" - John Lubbock

"The eye sees only what the mind is ready to comprehend" - Henri Bergson

“Answers are easy; it’s asking the right questions which is hard” - Dr. Who - 1977

"You know the very powerful and the very stupid have one thing in common - they don't alter their views to fit the facts, they alter the facts to fit their views (which can be uncomfortable if you happen to be one of the facts that needs altering)" - Dr. Who - 1977

The previous all-time high for the NYSE RA-AD line was printed 3-13-1959. The 1959 record was nominally higher than the prior all-time high achieved 3-19-1956. Due the time span of the chart it is difficult to nail down the time frames, but wanted present the entire history.

The market apparently has a long memory. In early December 2006, the RA-AD line finally came within 5000 net raw advances of the 1959 high, then for following 7+ weeks chopped around before nominally setting the record Wednesday. Thus, it certainly seemed as though the market recognized this was an important cumulative breadth resistance zone.

It would not surprise me, if the daily RA-AD line continued to chop around in this zone for awhile, like any resistance, it often has to be "softened up" before a decisive break out. Currently, the composite NYSE AD line is riding the back of the common stocks, as the preferreds and bond CEFs, comprising 1100 of the issues traded on the NYSE, have been weak.

One historical trait of new highs in the AD line, is any ensuing price correction is muted. When price and the AD line top out at the same time, there has never been a price correction significantly exceeding 10%, as measured by the SPX. A 10% correction is of sufficient magnitude that one would want to exploit or at least sidestep, but crashes (over 20% declines) have simply not occurred over history immediately following a new high in the AD line.

Look forward to your study, and thanks to all for your feedback and comments.

Based on your post coming on Jan 24, 2007 and the relative location of the $NYAD, I take it that the current decline has brought the RAAD back close to but not below the breakout line from 1959? I know things are very busy right now, so whenever you get the chance. Thanks.

"As for it being different this time, it is different every time. The question is in what way, and to what extent" - Tom McClellan

"An economist is someone who sees something happen, and then wonders if it would work in theory" - Ronald Reagan

"What we see depends mainly on what we look for" - John Lubbock

"The eye sees only what the mind is ready to comprehend" - Henri Bergson

“Answers are easy; it’s asking the right questions which is hard” - Dr. Who - 1977

"You know the very powerful and the very stupid have one thing in common - they don't alter their views to fit the facts, they alter the facts to fit their views (which can be uncomfortable if you happen to be one of the facts that needs altering)" - Dr. Who - 1977

What, an 8 minute response time to my request? Things sure seem to be slipping over here . In all seriousness, thanks for the chart, Fib.It's good to look at the big picture every so often.Let's see if she holds or not.Doc

Thanks for asking and answering the current configuration status of the NYSE composite RAAD line with respect to its late 50s all time high. My guess is the bulls will be furiously defending the former RAAD line all time high if and when it is tested going forward.

Hope to be back in gear within a week or so.... moving into a newly built home has taken its toll on any market operations from this corner, kind of the same dilemma Fib is having these days.

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